Topic: How To Invest

Hi Pat: I’d be interested in hearing your opinion of Genworth Financial and Genworth MI Canada. Thanks.

Article Excerpt

Genworth Financial, $10.61, symbol GNW on New York (Shares outstanding: 493.1 million; Market cap: $5.2 billion; www.genworth.com), is a U.S. financial company that provides insurance, wealth management, investment and financial products to about 15 million customers in more than 25 countries. The company has four main segments: U.S. Life Insurance, which supplies 65% of Genworth’s revenue, International Mortgage Insurance (15%), International Protection (9%), U.S. Mortgage Insurance (7%) and Wealth Management (4%). Genworth was badly hurt by the mortgages it insured during the big fall in U.S. housing prices in the recession. However, it has made a lot of progress in making its insurance business more profitable. For example, it is selling fewer long-term care policies and raising premiums on older policies where possible. It is also redesigning certain universal life products to cut their risk and increase their profitability. Genworth has also introduced a new term-life product. Nonetheless, the competitive and still-unsettled risky U.S. mortgage and insurance markets add risk…